Another Slide in US Stocks

August 19 00:00 2011

New York, August 19 – ( – US stocks have taken another beating on Thursday after a worldwide selloff. The main contributing factors affecting this decline are apprehensions of a worldwide slowing down of economies and the present debt crisis in Europe. These factors have put the financial sector under great strain. Close on the heels of the sliding Asian and European markets, US stocks opened at a considerably lower level and the Standard & Poor’s 500 stock index declined by 53.24 points to close at 1,140.65, a drop of 4.5 percent.

The NASDAQ composite closed at 2,380.43, down by 5.2 percent or 131.05 points and the Dow Jones Industrial average closed at 10,990.58, down by 3.68 percent or 419.63 points. The drop in U.S. stocks sent investors hurtling towards fixed-income securities as there was also a decline of the yield of the Treasury’s 10-year note which fell below 2 percent. Oil prices fell due to the slowing down of the global economies and an expected low demand of oil in the US. Gold prices rose considerably as it is considered a safer investment.

US stocks in most sectors like financial stocks, energy stocks, industrials, and minerals declined more than 5 percent and there was a drop of more than 6 percent of Bank of America and Citigroup stocks.